FINANCING OF PERMANENT WORKING CAPITAL IN AGRICULTURE

  • Branko Vučković, PhD Vojvodjanska Bank NBG Group, Sombor
  • Branislav Veselinović, PhD University Business Academy in Novi Sad, Faculty of Economics and Engineering Management, Novi Sad
  • Maja Drobnjaković, MA University Business Academy in Novi Sad, Faculty of Economics and Engineering Management, Novi Sad

Abstract

In this paper, we attempted to present the problem of establishing adequate structure of fnancing medium agricultural enterprises and to point out the necessity for permanent working capital in those agricultural enterprises which can’t cover fxed assets, long-term placements and portion of inventories (raw material and spare parts, production in process) with own equity and long-term sources of fnancing. For the purpose of analysing adequate structure of fnancing medium agricultural enterprises, we will use one of the most popular methods, such as case study and ratio analysis. Results of the research show that in primary agricultural production, next to standard long-term investment loans and short-term loans for investment in agricultural production, there is a necessity for fnancing in the permanent working capital which could assist continuity of production process and enable conditions for more proftable business in agriculture. It also should be noted that real and book value on this level of permanent working capital differs substantially.

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References

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Published
2017-09-30
How to Cite
VUČKOVIĆ, Branko; VESELINOVIĆ, Branislav; DROBNJAKOVIĆ, Maja. FINANCING OF PERMANENT WORKING CAPITAL IN AGRICULTURE. Economics of Agriculture, [S.l.], v. 64, n. 3, p. 1065-1080, sep. 2017. ISSN 2334-8453. Available at: <http://ea.bg.ac.rs/index.php/EA/article/view/74>. Date accessed: 20 nov. 2019. doi: https://doi.org/10.5937/ekoPolj1703065V.
Section
Original scientific papers